The panel approach was used in this research to explore the effect of foreign direct investment (FDI) on the economic development of the East African Community, involving five countries that are the founders of the EAC, including Tanzania, Kenya, Uganda, Burundi, and Rwanda. This study used a dynamic ordinary least square (DOLS) from 1990 to 2018 to examine the influence of FDI on economic growth. According to the result of this research, FDI has a favorable and considerable impact on economic development in EAC nations. In addition to that, a Granger causality test supported the relationships between economic growth measured in GDP and FDI inflow in the EAC. The study implies that FDI has been a significant stimulator of economic growth in the region for the past three decades.